Apple and Google join fintech to set ‘new standards’ in banking customer experience, report says

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The report said big tech posed a “disturbing threat” to traditional banks as big tech companies intended to bring together the best digital banking user experience at instance scale.

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Apple and other big tech companies are joining Monzo and Starling Bank in setting “new standards” for customer experience in banking, according to a new report.

The report from GP Bullhound, the technology investment and advisory firm, offers insight into some of the latest trends in fintech.

One trend he identifies is big tech, joining fintech and parking its tanks on the lawns of legacy financial institutions.

The report said big tech posed a “disturbing threat” to traditional banks as big tech companies intended to bring together the best digital banking user experience at instance scale.

Currently, Apple offers P2P payments, a Wallet app, a credit card, and the ability for merchants to accept payments from an iPhone.

Last month it acquired British fintech Credit Kudos, a British startup that uses bank data to help businesses make lending decisions for a reported $150 million.

The tech giants are also causing a “freak” in bank boardrooms over their “breakout” plans, the report says.

Apple’s “Breakout” project would see it develop its own payment processing technology and infrastructure for future financial products, including payment processing, loan risk assessments, fraud analysis, credit checks and customer service, without the help of external partners.

Other big tech players are getting into financial services, with some encouraging issues.

Google, for example, has scrapped plans to offer its Google Plex checking account, while Meta’s cryptocurrency, formerly known as Libra, appears to be headed for scrap amid opposition from regulators.

The report says that, overall, big tech inroads into financial services are a good thing as they will help “set new standards in customer experience and disrupt the status quo for traditional banks.”

This article was provided by 10x Banking and does not necessarily reflect the views of AltFi.

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